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Goodwill and Intangible Assets | 6 Months Ended
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Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets Goodwill Changes in goodwill consisted of (in millions):
| Latin America |  | AMEA |  | Europe |  | North America |  | Total
January 1, 2022 | $ | 674 |  |  | $ | 3,365 |  |  | $ | 7,830 |  |  | $ | 10,109 |  |  | $ | 21,978 |
Currency | 41 |  |  | (233) |  |  | (550) |  |  | (15) |  |  | (757) |
Acquisitions (1) | 714 |  |  | — |  |  | 795 |  |  | 1,020 |  |  | 2,529 |
Held for Sale (1) | — |  |  | — |  |  | (66) |  |  | (226) |  |  | (292) |
Divestitures | (8) |  |  | — |  |  | — |  |  | — |  |  | (8) |
Balance at December 31, 2022 | $ | 1,421 |  |  | $ | 3,132 |  |  | $ | 8,009 |  |  | $ | 10,888 |  |  | $ | 23,450 |
Currency | 172 |  |  | (82) |  |  | 134 |  |  | 19 |  |  | 243 |
Acquisitions (1) (2) | (2) |  |  | — |  |  | — |  |  | (21) |  |  | (23) |
Balance at June 30, 2023 | $ | 1,591 |  |  | $ | 3,050 |  |  | $ | 8,143 |  |  | $ | 10,886 |  |  | $ | 23,670 |
(1)Refer to Note 2, Acquisitions and Divestitures for more information. (2)Relates to purchase price allocation adjustments for Ricolino and Clif Bar during 2023. Intangible Assets Intangible assets consisted of the following (in millions):
| As of June 30, 2023 |  | As of December 31, 2022
| Gross carrying amount |  | Accumulated amortization |  | Net carrying amount |  | Gross carrying amount |  | Accumulated amortization |  | Net carrying amount
Definite-life intangible assets | $ | 3,311 |  |  | $ | (2,072) |  |  | $ | 1,239 |  |  | $ | 3,354 |  |  | $ | (2,057) |  |  | $ | 1,297 |
Indefinite-life intangible assets (1) | 18,600 |  |  | — |  |  | 18,600 |  |  | 18,413 |  |  | — |  |  | 18,413 |
Total | $ | 21,911 |  |  | $ | (2,072) |  |  | $ | 19,839 |  |  | $ | 21,767 |  |  | $ | (2,057) |  |  | $ | 19,710 |
(1)In 2022, we recorded $101 million of intangible asset impairment charges related to two biscuit brands in the AMEA segment, of which $78 million was recorded in the first quarter and $23 million was recorded in the third quarter. Indefinite-life intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings Corp., the global LU biscuit business of Groupe Danone S.A., Cadbury Limited and Clif Bar. Definite-life intangible assets consist primarily of trademarks, customer-related intangibles, process technology, licenses and non-compete agreements. Amortization expense for intangible assets was $37 million for the three months and $76 million for the six months ended June 30, 2023 and $32 million for the three months and $64 million for the six months ended June 30, 2022. For the next five years, we currently estimate annual amortization expense of approximately $150 million in 2023-2025, approximately $95 million in 2026 and approximately $90 million in 2027 (reflecting June 30, 2023 exchange rates). Impairment Assessment We test our reporting units and brands for impairment annually as of July 1, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit or brand is less than its carrying amount. During the second quarter of 2023, we evaluated our goodwill impairment and intangible asset impairment risk through an assessment of potential triggering events. We considered qualitative and quantitative information in our assessment. We concluded there were no impairment indicators. During our 2022 annual indefinite-life intangible asset testing, we identified eight brands that each had a fair value in excess of book value of 10% or less. The aggregate book value of the eight brands was $1.6 billion as of June 30, 2023. We believe our current plans for each of these brands will allow them to not be impaired, but if the brand earnings expectations are not met or specific valuation factors outside of our control, such as discount rates, change significantly then a brand or brands could become impaired in the future.

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